HALISTER1: Inflation Concerns Bias Steeper 5Y30Y UST Curve: Credit Agricole

Inflation Concerns Bias Steeper 5Y30Y UST Curve: Credit Agricole

(Bloomberg) -- Inflation concerns highlighted in the FOMC minutes are bullish for intermediate sector USTs, biasing a steeper 5Y30Y curve and a flatter 2Y10Y curve, Credit Agricole analyst Alex Li writes in note.
  • FOMC minutes included “heated debate” on downside inflation risks, leading to dovish market reaction; 2Y10Y curve flattened in post-minutes trading
  • Many Fed officials seeing risk of inflation below 2% goal for longer is “especially worrisome,” given inflation drop amid “tightened” resource utilization; however, stronger inflation tends to lag resource tightening
To contact the reporter on this story: Anna Windemuth in New York at awindemuth1@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Greg Chang

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Alex Li (Credit Agricole SA)

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